Production Begins from Victoria Area Fields

Installation and commissioning of the Victoria Area oil development has now been completed with an initial combined flow rate of around 13,000 barrels of oil per day. This rate will be monitored over the next few days to establish a stabilized flow rate. This is in addition to the current oil production from the other HJV oil fields of approximately 16,500 barrels of oil per day.

The Victoria Area Oil Fields, comprising of the Victoria, Pedirka and Little Sandy Oil Fields are located in TL/6 off the Western Australia coast, approximately 11 kilometers south of the Varanus island production facilities.

The Victoria Area Oil Fields were discovered in February-March 2002. The development comprises an un-manned mini platform with facilities for up to six wells, including the three deviated discovery wells Victoria-1, Pedirka-1 and Little Sandy-1. Victoria Area oil production is tied back to Varanus Island through the Gibson/South Plato pipeline and the Simpson oil development facilities.

This new development is the most recent addition to the "String of Pearls" development of oil fields south of the HJV production hub on Varanus Island. This now includes the seven oil fields Tanami, Simpson, Gibson, South Plato, Victoria, Pedirka, and Little Sandy.

Last in the current development will be the Double Island Oil Field which was discovered in January 2002. This tie in will also comprise a new un-manned mini platform. This is expected to be on stream in early 2003 at an initial rate of 4,000 barrels of oil per day.

Participants are Apache as operator with 68.5%; Kufpec with 19.2771% and Tap Oil with the remaining 12.2229%.